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Abnormal Phenomena In Chinese Stock Macket From The Perspective Of Behavioral Finance

Posted on:2014-07-29Degree:MasterType:Thesis
Country:ChinaCandidate:Y W XuFull Text:PDF
GTID:2269330422954601Subject:Business Administration
Abstract/Summary:PDF Full Text Request
This paper is motivated by the results of domestic and foreignresearch on behavioral finance, using empirical research method to supportseveral behavioral finance theories by focusing on Chinese stock market. Byusing Chinese A-share market’s date from2007to2013, this paperdocuments deeper practical significance in the specific investment operation.First, this paper introduced the traditional financial theory, thedevelopment process, recent research trends and the main content ofbehavioral finance theory.Second, this paper documented three anomalies on Chinese financialmarket: the momentum effect in growth enterprises market, theoverconfidence of Chinese A-share market and the calendar effects inFebruary. The conclusion is that the momentum effect exists in growth enterprises market; there is a positive relationship between overconfidenceand trading volume; compared with the market, the February calendar effectis more prominent in the tourism sector.Finally, the paper puts forward the viewpoints and conclusions.China’s stock market is weak form efficient. Under this background, thebehavioral finance theory has a broad application prospect. Severalinvestment strategies can be formed corresponding to the three anomaliesdocumented in this paper. If used properly, these strategies can get excessreturn beyond the market average. At the same time, the limitations of thesestrategies are described. The author hopes the research can help to improveinvestment strategies, provide reference for practical work.
Keywords/Search Tags:Behavioral finance, the Chinese stock market, Momentum effect, overconfidence, calendar effect
PDF Full Text Request
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